Defining the Low Interest Credit Card

Don't Just Look For The Obvious

Obviously a credit card with a 0% APR is a low interest credit card. You won’t find an interest rate lower than 0%. However, a 0% APR is usually only a temporary offer, and eventually the interest rate on this type of credit card will go up. A 0% APR credit card offer can last for six months to a year, and during that time the credit card can be considered a low interest credit card. However, depending on what interest rate the credit card goes up to after the promotion is over, it might not be a low interest credit card for long.

Depending on your credit history you might not always be able to qualify for the low interest credit card that you want. You might love to have a credit card with an interest rate of 8%, but that can be difficult to get.

How Low Should They Go?

A credit card that has an interest rate lower than 15% is generally considered to be a low interest credit card. Remember, credit card companies have to make a profit, and they charge consumers a premium in the form of interest rates in order to stay in business. It’s unreasonable to not expect to pay something for the convenience that credit cards provide, and if interest rates make you uncomfortable you are probably one of those few consumers who are simply better off not having a credit card.

The key to finding a low interest credit card is to shop around and read the fine print carefully. A low interest credit card that offers 0% APR initially is not going to be your best bet if the APR rises sharply to 25% following the promotion period.